Brig. Ahmed Al-Maqdish said security forces and special forces from the army are hunting down the terrorists who fled to the mountains, confirming that the army is besieging the mountains.

On Tuesday, Yemeni forces launched an all-out campaign against Al-Qaeda in the Arabian Peninsula outfit in Shabwa.

Local sources said the clashes erupted when militants attacked a military patrol killing two officers. Al-Qaeda was accused of carrying out the attack. Four soldiers have been killed since the beginning of the campaign.

The governor of Shabwa, Ali Hassan Lahmdi, flatly denied any direct involvements of US drones in the current war on Al-Qaeda in the district saying “the assault is solely carried out by Yemen anti-terrorism forces.”

Local journalists from the troubled governorate told Arab News that most of the city's inhabitants fled their homes to relatives in neighboring cities and governorates.

"Approximately 23,000 people have escaped,” said an independent journalist who preferred to remain anonymous. He estimated that 80 families have been sheltered in two schools in Azan city, about 10 km from the battle zone. "There are no refugee camps in the area. Huta city is about 150 km from Al-Awalik mountains in the district of Al-Said, the hometown of Anwar Al-Awlaki, who was wanted by the United States," he added.

The militants withdrew from the city to the mountains at night following an air strike. The displaced people didn't go back despite the restoration of calm. Local authorities and NGOs distributed foodstuffs and first aid. A blood donation campaign was launched in Azan's general hospital.